RBI seeks payments’ data storage update every fortnight

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Amid heightened concerns around data security, especially post Cambridge Analytica controversy, the Reserve Bank of India (RBI) is learnt to have asked payment services players to provide an update on action taken by them to store transaction data in the country in every fortnight.

“You are hereby advised to inform the status of ensuring compliance…The same shall be submitted by June 8, 2018, followed by an update on progress at fortnightly intervals thereafter,” the RBI said in the letter referring to its order dated April 6, 2018.

Taking a cue from social media major Facebook facing a major backlash in recent times over breach of user data, country’s central banking institution, mandated with regulating the banking sector, including payment systems in India, in its official communiqué added that ensuring the safety and security of payment systems data by adoption of the best global standards and their continuous monitoring and surveillance is essential to reduce the risks from data breaches while maintaining a healthy pace of growth in digital payments.

According to the last relevant order issued by RBI on April 6, all payment system providers including payments bank, payment gateways are required to ensure that full end-to-end transaction details relating to payment systems operated by them are stored in a system only in India within a period of six months from the date the order was issued.

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